B Ltd is a company in the chemical industry, situated near the Edward River. Its year end is 30th June 2021 and you were engaged as the auditor on that date. The profit before taxation shown in the draft accounts to 30th June is $24,000,000
B Ltd is a company in the chemical industry, situated near the Edward River. Its year end is 30th June 2021 and you were engaged as the auditor on that date. The profit before taxation shown in the draft accounts to 30th June is $24,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
B Ltd is a company in the chemical industry, situated near the Edward River. Its year end is 30th June 2021 and you were engaged as the auditor on that date. The profit before
The following matters have come to your attention:.
A debtor owing $180,000 at 30th June 2021 was declared bankrupt on 1 August 2021. The trustee in bankruptcy has informed B Ltd that she does not expect a payment of more than 8cents in the $1 to be made to unsecured creditors
With reference to relevant audit standards, identify the business risk and outline any resulting potential audit risks that may require further investigation.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education